Bill Gates, the creator of Microsoft, stated on Tuesday that non-fungible tokens (NFTs) are “100% based on bigger fool theory,” the premise that people may profit by buying inflated assets and then selling them for a profit.
He added that NFTs and cryptocurrencies are 100 percent based on “sort of greater fool theory that somebody’s going to pay more for it than I do.”
Gates stated at the Tech Crunch conference that he is not interested with bitcoin and that he is more familiar with asset classes such as “a farm, where they produce output, or a firm, where they manufacture items.”
According to Gates, at the heart of the crypto and NFT movement is an anonymity allowing buyers to avoid taxation or government rules about “kidnapping fees or things.”
Cryptocurrencies gained popularity during the pandemic and have been integrated into more asset portfolios, with banks and brokers now offering purchasing and custody services. Various celebrities have also offered celebrity endorsements for cryptocurrencies and a number of them, including former first lady Melania Trump, have entered into the world of NFTs.
The billionaire also took aim at the “Bored Apes” collection of ethereum NFTs, jokingly adding that “digital images of monkeys are going to improve the world immensely.”
Gates’s comments come after bitcoin plunged nearly 23 percent over the weekend, hitting its lowest point since late last year. Ethereum, the second most popular cryptocurrency, dropped 32 percent as well.
- Crypto and NFTs, according to Bill Gates, are based on the ‘big fool theory’
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